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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, June 16 — Hong Jung-do, Vice Chairman of JoongAng Group, issued a public apology following the group’s decision to file for court-led rehabilitation for several key affiliates amid a liquidity crisis.
Speaking at a press conference held at the JoongAng Ilbo Building in Mapo, Seoul, Hong said, “We sincerely apologize for causing concern. Despite our best efforts to stabilize management, deteriorating external economic conditions and tightening liquidity due to credit rating downgrades have left us with no choice but to make this difficult decision.”
Five entities — including the group’s holding company JoongAng Holdings, JTBC, ContentreeJoongAng, Megabox JoongAng, and JoongAng P&I — filed for rehabilitation with the court on June 14 and 15.
Hong extended a second apology to stakeholders, including creditors and shareholders, stating, “We will prioritize restoring losses and do everything in our power until the very end.” He also acknowledged the concerns of employees, adding that the group would pursue all available measures for a swift normalization while making every effort to ensure job stability.
He emphasized that the rehabilitation filing should be viewed as “a new beginning” aimed at preserving broadcasting — described as a national asset — and maintaining stability for partners and employees. “Core operations, including broadcasting rights such as the FIFA World Cup coverage, will continue without disruption,” he added.
Earlier, JTBC declared a default on June 12 after failing to repay approximately 20.6 billion won in asset-backed borrowings at maturity. The company attributed the default to a sharp downturn in the TV advertising market amid rapid shifts in the media landscape toward digital and over-the-top (OTT) platforms.
Following the default, major domestic credit rating agencies, including NICE Investors Service and Korea Ratings, downgraded the credit ratings of JTBC and JoongAng Ilbo.
In an internal email sent to employees, Hong reiterated his apology, noting that “accumulated financial burdens and prolonged capital market tightening” led to the decision to seek court rehabilitation. He pledged that management would work closely with the court and relevant authorities to improve the group’s financial structure and stabilize operations, including the normalization of trading for listed affiliates.
Separately, Park Jang-hee, CEO of JoongAng Ilbo, stated in a release that the newspaper, as the group’s flagship entity, feels a “profound sense of responsibility” for the situation. He added that JoongAng Ilbo plans to pursue a workout program to ensure continuity in content publication and to uphold its public role as a media organization without interruption.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
